Note 10 - Business Unit Segment Information

6 Months Ended

Jun. 27, 2015

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

10

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Business Unit Segment Information

The company and its subsidiaries design, manufacture and sell circuit protection devices throughout the world. The company reports its operations by the following business unit segments: Electronics, Automotive, and Electrical. Each operating segment is directly responsible for sales, marketing and research and development. Manufacturing, purchasing, logistics, customer service, finance, information technology and human resources are shared functions that are allocated back to the three operating segments. The CEO allocates resources to and assesses the performance of each operating segment using information about its revenue and operating income (loss) before interest and taxes, but does not evaluate the operating segments using discrete balance sheet information.

Sales, marketing and research and development expenses are charged directly into each operating segment. All other functions are shared by the operating segments and expenses for these shared functions are allocated to the operating segments and included in the operating results reported below. The company does not report inter-segment revenue because the operating segments do not record it. The company does not allocate interest and other income, interest expense, or taxes to operating segments. Although the CEO uses operating income (loss) to evaluate the segments, operating costs included in one segment may benefit other segments. Except as discussed above, the accounting policies for segment reporting are the same as for the company as a whole.

An operating segment is defined as a component of an enterprise that engages in business activities from which it may earn revenues and incur expenses, and about which separate financial information is regularly evaluated by the Chief Operating Decision Maker (“CODM”) in deciding how to allocate resources. The CODM is the company’s President and Chief Executive Officer (“CEO”)

Business unit segment information for the three and six months ended June 27, 2015 and June 28, 2014 are summarized as follows (in thousands):

	For the Three Months Ended						For the Six Months Ended
	June 27, 2015			June 28, 2014			June 27, 2015			June 28, 2014
Net sales
Electronics	$	105,553		$	109,947		$	204,933		$	205,972
Automotive		85,918			82,042			169,989			164,444
Electrical		30,550			28,919			57,412			57,351
Total net sales	$	222,021		$	220,908		$	432,334		$	427,767
Depreciation and amortization
Electronics	$	5,775		$	5,530		$	11,573		$	10,900
Automotive		3,303			3,646			6,639			7,174
Electrical		1,295			1,414			2,579			2,682
Total depreciation and amortization	$	10,373		$	10,590		$	20,791		$	20,756
Operating income (loss)
Electronics	$	22,167		$	25,634		$	40,832		$	45,005
Automotive		12,699			11,049			23,870			22,931
Electrical		4,709			571			7,439			4,317
Other (1)		(3,404	)		(3,535	)		(6,422	)		(4,944	)
Total operating income		36,171			33,719			65,719			67,309
Interest expense		948			1,228			2,099			2,444
Foreign exchange (gain) loss		(1,292	)		2,375			1,825			2,123
Other (income) expense, net		(1,202	)		(1,446	)		(2,328	)		(2,632	)
Income before income taxes	$	37,717		$	31,562		$	64,123		$	65,374

(1) For the three months ended June 27, 2015, “Other” consists of restructuring costs ($2.5 million), acquisition expenses ($0.2 million) and pension wind-up costs ($0.7 million). For the six months ended June 27, 2015, “Other” consist of restructuring costs ($4.8 million), acquisition expenses ($0.3 million) and pension wind-up costs ($1.3 million).

The company’s significant net sales by country for the three and six months ended June 27, 2015 and June 28, 2014 are summarized as follows (in thousands):

	For the Three Months Ended (a)				For the Six Months Ended (a)
	June 27, 2015		June 28, 2014		June 27, 2015		June 28, 2014
United States	$	89,608	$	80,492	$	172,981	$	152,366
China		49,920		39,987		94,349		77,200
Other countries		82,493		100,429		165,004		198,201
Total	$	222,021	$	220,908	$	432,334	$	427,767

(a) Sales by country represent sales to customer or distributor locations.

The company’s significant long-lived assets and additions to long-lived assets by country as of June 27, 2015 and December 27, 2014 are summarized as follows (in thousands):

	Long-lived assets (b)
	June 27, 2015		December 27, 2014
United States	$	34,129	$	34,179
Mexico		46,052		47,936
China		40,416		40,981
Other countries		45,782		35,544
Total	$	166,379	$	158,640

(b) Long-lived assets consists of net property, plant and equipment

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The company’s additions to long-lived assets for the six months ended June 27, 2015 and June 28, 2014 are summarized as follows (in thousands):

	Additions to long-lived assets
	June 27, 2015		June 28, 2014
United States	$	6,615	$	3,309
Mexico		4,190		4,694
China		4,080		2,506
Other countries		11,503		2,623
Total	$	26,388	$	13,132